Fees are one of the most important factors of successful retirement investing. They determine how much ends up in your pocket after mutual funds and 401(k) plan providers take their cut. The bite especially hurts younger workers, who face the risk that high fees will compound over time.
“Fees compound in the same way that returns compound,” said Scott Puritz, managing director at Rebalance, a firm that often works with clients on 401(k) rollovers and advises companies on ways to improve their plans. “People are numb to the differences, but it’s a major determinant of long-term returns.”
Costs are usually much higher in plans sponsored by small businesses, like the 10-person firm where Mr. Gentry works. His plan doesn’t offer low-cost passive index fund choices. He is invested solely in a target date fund made up of actively managed mutual funds that have lagged the overall market’s returns during the past decade. The fund charges an annual expense fee of just over 1 percent.
https://www.nytimes.com/2024/04/19/business/401k-fees-retirement.html
Over 1% for a 401k is INSANE